Multiple tailwinds in NMDC point to major upside, mine-lease premium weighs

The public-sector unit, NMDC is a potential beneficiary of the supply chain disruption in global commodity markets. Ukraine and Russia are both major players in iron and steel and iron ore exports, and the war has led to that supply – about 10 per cent of iron and steel exports – being cut off. As one of India’s largest players in iron ore, NMDC has been able to hike prices for the third time since January 2022. Although ore prices may taper in 2022-23, the uncertainties of the conflict and sanctions makes timelines difficult to predict. As of now through the medium-term prices remain firm and NMDC’s prices are still substantially lower – around 40 per cent less than international